FOOD CONTROL

PURCHASING
3.1 RESPONSIBILITY FOR
PURCHASING
CHAPTE
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FOOD CONTROL
PURCHASING
3.1 RESPONSIBILITY FOR
PURCHASING
 INTRODUCTIO
Purchasing is the process of buying goods, materials, and equipment to keep business
N smoothly. It ensures items are bought at the right time, in the right
operations running
quantity, and with the best quality.

Role of a Purchasing Manager

A Purchasing Manager (also called Procurement Manager or Procurement Officer) is
responsible for:
• Finding reliable suppliers for quality goods at good prices
• Negotiating prices and contracts
• Reviewing technical details of materials and equipment
• Deciding when and how much to order (especially in small companies)
• Predicting future demand
 -Purchasing processing is an important part of running a food business. A good cook
should know how to choose the right ingredients, buy the correct amount, and get them
at the best price.

Basic Rule: Only buy what is needed until the next delivery. This keeps food fresh and
prevents waste.

Market Sourcing
Buyers get food from different suppliers, such as:
•Wholesalers – Sell large amounts of food.
•Local producers and packers – Provide fresh food like meat and dairy.
•Retailers and cooperative associations – Offer various food products.
•Food importers – Supply international products.

Once a supplier is chosen, all purchases should be recorded for future reference.
Perishables (Go bad quickly)
•Fruits, vegetables, fresh fish, meats, poultry, and dairy
•Bought often to keep them fresh
•Frozen foods last longer and can be stored

Non-perishable (Last longer)

Examples:
•Dry goods like flour, sugar, spices, and canned foods
•Buy only what is needed to avoid wasting money on extra stock
•Extra supplies take up space and tie up money that could be used elsewhere
Factors That Impact Prices
Food prices change throughout the year due to several reasons:

Seasonality – In-season foods are cheaper, fresher, and last longer.

Out-of-season foods cost more because they travel long distances.
Weather – Droughts, floods, or frost can reduce supply and increase prices.
Transportation Costs – Higher fuel prices make food more expensive.
Commodity Prices – Foods like meat and grains fluctuate in price, similar to the stock
market.
Before Buying Food, Ask:
When will it be used? (Buy fresh items when needed.)
Which supplier offers the best price and quality? (Compare at least three.)
When will it be delivered? (Timely delivery ensures food quality.)
Good menu planning and inventory management help keep costs low and food
quality high.

Specifications Meat, seafood, poultry, processed fruits and vegetables, and fresh
fruits vegetables can be ordered under different specifications.
Specifications
Specifications Meat, seafood, poultry, processed fruits and vegetables, and fresh
fruits vegetables can be ordered under different specifications. It is a document that
describes the requirements for a purchase.

A purchasing specification sheet helps track these details in commercial kitchens.

Contract Buying
Contract Buying: Some restaurants and hotels, especially chains, have contracts with
specific suppliers.
Advantages (Pros):
Stable Prices: The price of food stays the same during the contract, even if market
prices go up.
Easier Cost Management: Since prices don’t change, it’s easier to control food costs
and budgeting.

Disadvantages (Cons):
No Price Comparisons: You can’t check other suppliers for better deals.
Missed Discounts: If another supplier offers lower prices or special deals, you can’t
take advantage of them.
Purchasing Procedures
In most kitchens, the chef or sous-chef handles purchasing. Large hotels may have a
purchasing department for this job. Kitchens keep supplier lists, contact details,
delivery schedules, and order sheets. For special events like banquets it is necessary
to determine the required supplies for the function alone.

Production Control Chart:

Production Control Chart: Used to calculate how much food to order for a banquet.
Shows portion sizes for each menu item.
Purchase Order Chart with Par Levels
A purchase order chart helps ensure there is enough food to meet daily needs. To
manage inventory properly, food supplies should be checked daily.
Key Factors:
1.Par Level – The amount of food needed until the next order.
2.Amount on Hand – How much food is currently in stock.
3.Amount to Order – How much more needs to be bought.

To calculate how much to order:

Amount Required (Par Level) - Amount on Hand = Order Quantity
 FOOD CONTROL
PURCHASING
3.2 DEVELOPING STANDARDS AND
STANDARD PROCEDURES FOR
PURCHASING
 DEFINITION
The main goal of purchasing control is to ensure a steady supply of the rigth amount
of food, with the right quality, at the best price. To achieve this, businesses set clear
standards for:
1. Quality of food purchased
2.Quantity of food purchased
3.3. Prices at which food is purchased

Establishing Quality Standards

Before buying food, management must decide what types and qualities of food are
needed for daily operations. This is based on the menu, but choices like fresh vs.
processed, brand, size, and packaging must also be considered.
Establishing Quality Standards
Before buying food, management must decide what types and qualities of food are
needed for daily operations. This is based on the menu, but choices like fresh vs.
processed, brand, size, and packaging must also be considered.

A standard purchase specification is a detailed description of food items to ensure

consistent quality. These specifications help suppliers understand exactly what the
restaurant needs. Benefits of Standard Purchase Specifications:
1. Help managers decide food requirements in advance.
2. Make menu planning easier by using the same quality ingredients.
3. Prevent misunderstandings with suppliers.
4. Allow fair price comparison between different suppliers.
5. Save time by avoiding repeated verbal explanations.
6. Make it easier to check food quality upon delivery.
This critically important step
Purchasing quantities must be reviewed regularly, as food can spoil. The food
controller ensures the right amount is bought based on how long food stays fresh.

Perishables: Always use what is on hand before ordering more. The par stock
system helps decide how much to buy. Par stock = The amount needed for a set
period.

Inventory Check: The steward takes a daily inventory of perishables. Some items
are counted exactly (e.g., beef ribs), while others are estimated (e.g., chopped beef).
A Steward’s Market Quotation List helps track inventory and orders.
 Nonperishable: foods don’t spoil quickly, but storing too much ties up money and
space. To prevent overstocking, labels should be placed on shelves to keep items
organized and easy to track.

Inventory Methods:
• Periodic Order Method – Orders are placed at set intervals (weekly, biweekly,
or monthly)
• Perpetual Inventory Method – Continuously tracks stock levels to determine
when to reorder.

How to Calculate Order Quantity:

(Amount needed for the period) - (Amount on hand) + (Amount to keep in stock) =
Amount to order

For example, if a restaurant uses 40 cans of pineapple per month, has 12 cans in
stock, and wants 15 cans left at the end, they should order 43 cans.
Bin Card
-A bin card is used in storage areas (like a storeroom or warehouse) to track the
physical quantity of an item. It helps storekeepers know how much stock is available
at any time. Example: A hotel kitchen has a bin card for sugar. Every time sugar is
added or taken out, the storekeeper updates the card. This helps avoid running out of
stock.

Perpetual Inventory Card

-A perpetual inventory card is used to track both the quantity and cost of stock. It
helps businesses keep an accurate record of purchases, usage, and value.

Example: A restaurant uses a perpetual inventory card for chicken. It records how
much chicken is bought, used, and how much it costs. This helps in budgeting and
financial tracking.

Difference:
Bin Card → Focuses on stock quantity (used in storage).
Perpetual Inventory Card → Tracks both stock quantity and cost (used for accounting
& inventory control).
Establishing Standards for Prices

Once quality and quantity standards are set, it's important to buy food at the best
price. To do this, businesses compare prices from different suppliers.
The number of suppliers depends on location. Cities have more options, while rural
areas have fewer. Common suppliers include:
• Wholesalers
• Local farmers & producers
• Manufacturers & packers
• Retailers & cooperatives

Phone calls & sales visits (traditional)

• Fax & mail price lists
• Online systems & websites (most common today)
• With modern technology, food orders are now mostly placed online instead of
through sales visits.
Centralized purchasing
This helps a business save money, stay organized, and ensure quality by having one
team handle all buying instead of each department doing it separately.

Degrees of Centralization
Centralized purchasing means one main department sets the rules for buying. In a
fully centralized system, all purchases come from the headquarters. In a center-led
system, the main office sets policies, but each department handles its own daily
purchases.

Strategic Efficiency
A centralized purchasing system helps align buying decisions with the company’s
long-term goals. Since purchasing is seen as important, it plays a bigger role in
business planning and financial success.

Control and Management

Centralized purchasing improves control by setting clear rules for buying. It decides
who can place orders, how vendors are chosen, and spending limits. It also sets
ethical guidelines, like rules on accepting gifts and handling confidential information.
Advantages of Centralized Purchasing
•Buying in bulk lowers costs.
•Easier to find high-quality products.
•Products meet exact specifications.
•Larger inventories ensure a steady supply.
•Reduces chances of dishonest purchasing.

Disadvantages of Centralized Purchasing

•Individual units must use standard items.
•Local stores' special deals may be missed.
•Menus are standardized, limiting changes.
Review Questions:

1.Describe how quantity standards for perishable and nonperishable

food purchase.

2. Outline possible consequences of failure to train employees

responsible in purchasing.